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Please enjoy this information that is designed to help inform you as you pursue your financial independence. We are passionate about what we do and love who we serve. Becker Retirement Group provides insurance and investment products to help you work towards your retirement goals.

Retirement is still something most people look forward to, but over the years, some of the reasons for anticipation have dwindled. During the industrial age, more people worked jobs requiring manual labor that were hard on the body.

By mid-century, many rank-and-file workers could look forward to a pension waiting for them upon retirement. Workers simply had to accumulate enough credits to retire knowing that a pension would provide income for the rest of their lives.

Now, physically demanding jobs are more of a rarity for pre-retirees, and modern-day ergonomic training is available to help ease the aches and pains of the daily grind. Pensions are also more uncommon, giving way to employee-contribution retirement vehicles like 401(k)s. Instead of looking forward to retiring, working longer can enable employees to save and invest longer.1

Workers today understand they may have to provide for a substantially greater share of their retirement income thanks to longer average lifespans. There’s also the possibility retirement could last multiple decades, and some retirees might miss the daily intellectual and social engagement a job provides.

This makes retirement income planning different than, say, college planning. When saving for a child’s education, parents have the advantage of knowing when the student will go to college and generally how many years he or she will be there. The “when” and “how long” are unknown factors when it comes to retirement.

As financial professionals, these are the types of variables we help address when advising clients. It is important to have the experience of helping clients make financial decisions and contingency plans throughout their retirement — experience we can use to guide the financial strategies we help our clients create every day.

Here are some other reasons today’s workers may be inclined to keep working past the traditional retirement age:

Increase Savings

According to a recent survey, the most common financial reasons older employees work in retirement are to:2

Give their nest egg more time to grow (19%)

Earn “fun money” for discretionary purposes (31%)

Leave a better legacy to heirs or charities (6%)

Increase Social Security Benefit

Sometimes it’s necessary for retirees to start taking Social Security benefits early, but that doesn’t mean they can’t continue or go back to work; nor does it mean they necessarily lock into a lower benefit for life. If you earn more than $16,920 in 2017 while receiving benefits prior to full retirement age, Social Security will deduct one dollar in benefits for every two dollars in earnings above $16,920.3 However, once you reach full retirement age, your benefit will be increased to account for benefits withheld due to earlier earnings and working once you reach full retirement age doesn’t affect your benefits. The agency will also recalculate your benefit based on your “new” highest 35 years of annual earnings, which could increase your overall benefit.4

Company Benefits

Some seniors continue to work because their employer’s health insurance is better and less expensive than Medicare.5Please note that even if you have coverage through a current or former employer, you may still need to make some important Medicare enrollment decisions.

Switch Jobs, Work Longer

Some people retire because they dislike their job. However, a new study revealed that when workers take the initiative to switch to a more enjoyable position say, in their 50s, they tend to work longer — increasing both their income potential and job satisfaction. That’s no small improvement on both fronts.6

Feel Valued

Retirees have been known to go back to their old jobs because they get bored. At least one retiree observed that returning to work in a part-time capacity not only led him to enjoy the job more, but he felt better valued by his employer.7 We all know that sometimes we don’t appreciate what we have until it’s gone, and that can certainly apply to employers.

We are able to provide you with information but not guidance or advice related to Social Security and Medicare benefits. Our firm is not affiliated with the U.S. government or any governmental agency.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. None of the information contained on this website shall constitute an offer to sell or solicit any offer to buy a security or any insurance product.

*Any references to protection benefits or steady and reliable income streams on this website refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by insurance company. Annuities are not FDIC insured.

The information and opinions contained in any of the material requested from this website are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. They are given for informational purposes only and are not a solicitation to buy or sell any of the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.